GBP/USD: Pulling-Back In Middle Of Range
Forex4you | Apr 21, 2015 07:23AM ET
Cable is in a sideways consolidation within a broader down-trend.
Within that sideways consolidation it has been rising up in a very short-term up-trend, and then over the last two days has pulled-back.
Research shows that tomorrow will probably be an 'up' day, and the release of the BOE minutes could be the catalyst for such a resumption, although the extent of the move higher is difficult to predict – and it is not a 100% certain. The monthly pivot at 1.4964 could cap gains.
Given the messy sideways nature of price action for the last month, I would probably advocate waiting for a clean breakout from this sideways mode.
As such a move above the 1.5166 range highs could confirm a bigger change of trend and a move higher to a target at 1.5290 and the R1 monthly pivot initially.
Alternatively a break below the 1.4565 lows would almost certainly reach 1.4500. A clear break below that level as well as the S1 monthly pivot at 1.4492 – so below 1.4472 – would probably supply confirmation an extension to the 61.8% extrapolation of the consolidation zone at 1.4315.
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